Negotiation Strategies and Techniques Flashcards

In real estate negotiation, what is the concept of BATNA?

Answer: Best Alternative To a Negotiated Agreement — the fallback option if talks fail

BATNA (Best Alternative To a Negotiated Agreement) defines the point at which a party is better off walking away than accepting the current offer.

What negotiation strategy involves making a very low (or high) initial offer to anchor the negotiation around that figure?

Answer: Anchoring

Anchoring sets an extreme reference point that psychologically influences the counterparty's perception of what is fair or reasonable.

A seller rejects a buyer's offer but makes no counteroffer. What is the most strategic CRS agent response?

Answer: Ask the listing agent what specific objection caused the rejection

Understanding the seller's objection—whether price, terms, timeline, or contingencies—allows the buyer's agent to craft a targeted and effective counteroffer.

Which negotiation tactic involves making a concession on a minor issue to gain movement on a major one?

Answer: Trading concessions

Trading concessions strategically—giving up something of low value to receive something of high value—is a core skill in win-win negotiation.

In a multiple-offer situation, what is one key tactic a buyer's CRS agent might use to strengthen their offer beyond price?

Answer: Offering flexible closing dates aligned with the seller's needs

Aligning the closing timeline with the seller's needs can differentiate an offer even when price is competitive, addressing the seller's underlying motivations.

What does an escalation clause in a purchase offer do?

Answer: Increases the buyer's offer incrementally above competing offers up to a stated maximum

An escalation clause helps a buyer remain competitive in a bidding war without necessarily overpaying, by automatically beating rival offers up to a cap.